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V1559-18 6 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Client meal expenses are deductible for Personal Income Tax if linked to business activity and meeting legal requirements

A self-employed professional enquires whether client meal expenses can be deducted from their Personal Income Tax (IRPF). The Directorate General for Tax Affairs (DGT) rules that they are deductible provided their link to the business activity is proven and the 1% turnover limit is respected.

The question raised

Possibility of deducting the aforementioned expenses in the Personal Income Tax (IRPF).

The DGT's ruling

Expenses for meals with clients are deductible provided that their correlation with the generation of income and the development of the activity is proven. They must comply with correct temporal imputation, be recorded in the accounting books or ledgers, and be justified. Furthermore, a limit of 1% of the net amount of the turnover for the tax period applies. The Administration has the competence to assess the evidence of said connection.

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